Successful negotiations can make or break a business deal. This article presents valuable insights from seasoned business leaders on their most effective negotiation strategies. From developing strategic partnerships to knowing your walk-away point, these expert tips will help you sharpen your negotiation skills and close more deals.

"In one memorable round of negotiation, I sat down with a vendor who had strong geographic coverage and a decent pricing structure but seemed inflexible on additional value-adds. Instead of pushing back on price, I asked targeted questions about their warehouse optimization practices, technology stack, and ability to scale. As I listened closely, I uncovered that they had recently implemented a real-time tracking system with unused capacity they were piloting internally. I proposed co-developing a dashboard with them that would integrate with our ERP system, providing both visibility and performance analytics—something their sales team hadn't initially considered as a negotiating point. That pivot changed the tone entirely.

"The most powerful negotiation strategy I've learned and now regularly use is to uncover the other party's underlying interests, not just their stated positions. By listening more than talking, and asking thoughtful, open-ended questions, you gain leverage not through confrontation, but through collaboration. We didn't win the negotiation by squeezing every last cent out of the deal. We won because we created a partnership that delivered more value than either side anticipated—and that's the hallmark of truly strategic negotiation."
— Viraj Lele , DHL Supply Chain

"We were approached by a large OEM looking to outsource precision components. However, they were hesitant due to previous supply chain issues with another vendor. I led the negotiation by shifting the focus away from just pricing and emphasized our track record in quality control, on-time delivery, and ability to scale production without compromising precision.

"My top negotiation tip is to lead with value, not just numbers. When you understand the deeper pain points and align your strengths to solve them, price becomes a secondary conversation."
— Jacky Chow , Fast Preci

"I negotiated a critical manufacturing deal while we were still in pre-launch. Instead of pitching as a desperate founder, I approached the other company as a strategic partner. I walked them through our road map, who we were building for, and why our market was deeply underserved and ready for innovation. I acknowledged our limitations but offered something different: fast iteration, honest feedback, and the opportunity to grow together. That shifted the tone. We secured a low MOQ, delayed payment on the first order, and permission to customize firmware—all of which helped us launch fast and test with real users.

"One negotiation tip: lead with clarity and vision, not desperation. Most people try to win negotiations by bargaining harder. What works better? Show the other side a future where you win together. Be clear, be calm, and make it about long-term value. Trust builds better deals than pressure ever will."
— Omji Prasad Sah , USKII

"Never concede value without reciprocity. Whether it's a homeowner who wants a one-time discount or a corporate client asking for a deep discount, always attach it to something tangible, such as a longer contract, upfront payment, or providing a testimonial. This approach transforms price haggling into building a partnership, ensuring that both sides win."
— Iryna Balaban , Elite Maids NY

"Negotiation is at the heart of nearly every successful deal. Focus relentlessly on identifying the other party's underlying motivations and priorities, beyond just the obvious price. People often negotiate for reasons other than money—convenience, speed, certainty, emotional connection, or flexibility might be paramount. If you can address their true needs, you can often secure a deal that significantly benefits your client (and thus your business), even when outbid on pure price. It's about solving their problem, not just haggling over numbers."
— Kim Lee , Kim Lee Real Estate

"Two years ago, I was attempting to close a deal with a major aerospace company for our air quality monitoring system, and they were extremely skeptical. Although our solution worked, they were accustomed to dealing with massive, established vendors with decades of proven results. They repeatedly questioned whether our technology could actually integrate without disrupting their existing setup.

"Instead of presenting another mundane Google Slides presentation, I completely changed tactics. I invited them for a live demonstration, then proposed something different: a pilot program. This would allow them to test our system for a few months. If it didn't work, we would absorb the cost and rectify it. I frankly told them that we needed their success more than they needed us, so we would be present every single day ensuring it worked.

"We structured a pilot with almost no upfront investment from them. After three months of testing, our system not only worked but made their operations run more smoothly than they had anticipated. By the conclusion of the pilot, they were already discussing long-term contracts. That deal became our largest revenue generator.

"My negotiation advice: make it impossible for them to refuse by eliminating all their risk. When you demonstrate that you're willing to bet on your own product and their success, everything changes. They stop perceiving you as a vendor trying to make a quick profit and start viewing you as a genuine partner."
— Michal Kierul , InTechHouse

"Know your absolute minimum—the point where you can comfortably turn around and walk away. Never go below this threshold. Ever. Your minimum should actually become your target condition. Everything above that minimum is a bonus you'll be thrilled about. Everything below means you stand up and leave the room.

"Psychology is powerful. When you're genuinely prepared to walk away, you negotiate from a position of strength rather than desperation. You're not emotionally attached to closing the deal at any cost, which paradoxically makes you more likely to close it on favorable terms.

"Most entrepreneurs struggle with this because they're afraid of losing opportunities. But here's what I've learned: the deals you walk away from often teach you more about your business value than the ones you accept at any price. When you know your minimum and stick to it, you find that sweet spot where business becomes sustainable and profitable rather than just busy."
— Jeff Tilley , Muncly

"A regional furniture giant asked me to diagnose the bottlenecks in their made-to-order line—think dining tables that needed custom finishes and routinely missed promised ship dates. They had burned through two lean-manufacturing consultants already and were wary of 'another slide deck.' Their purchasing director liked the idea I proposed, but balked at my fee: 'We pay our other advisors half of that.'

"Instead of defending hourly rates, I flipped the conversation to outcomes. I had spent a morning on the shop floor and knew the late-shipment penalties were averaging $22,000 a month. So I said, 'Pay me a modest base—just enough to cover travel and time—and if we shave even 10% off those penalties by the end of the pilot, you cut me a check for 20% of the savings. If we don't, you owe nothing beyond the base.' We sketched the numbers on a notepad smeared with finishing oil, calculated break-even at week four, and shook hands before the coffee went cold.

"The pilot trimmed delays by 17% percent, which meant I earned more than my original quote while the plant pocketed roughly $180,000 in avoided fees over the next year. The director later told me the risk-sharing structure helped him sell the project internally: finance saw a capped downside, operations saw a clear scoreboard, and I signaled I was betting on my own work. That single deal became a case study I now slide into every new pitch deck—proof that small wins, not grand theories, move factories.

"Negotiation tip: price the problem, not the labor. When you anchor the discussion to the measurable pain the client already feels—lost revenue, scrap, penalties—you convert the talk from 'How much do you charge?' to 'How much can we save together?' People are far less protective of money they're currently leaking, and far more willing to share the upside of plugging the leak."
— André Ahlert , AEX

"I negotiated a strategic partnership with a large outbound sales organization that, at first, was extremely hesitant to switch platforms. Rather than focusing specifically on pricing, I tried to focus more on a value-based negotiation. I figured that demonstrating how our platform would improve their reps' call volume, reduce downtime, and increase conversions through a variety of our features would be of much better value to both parties.

"To close the deal, I offered a short pilot period and embedded custom onboarding support to de-risk the transition for them. This was huge for the growth and longevity of my company. The approach paid off as they are still one of our most loyal long-term clients and have brought in multiple referrals over the years."
— Chris Sorensen , PhoneBurner

Brett Farmiloe

Brett Farmiloe is the founder and CEO of Featured, a platform where business leaders can answer questions related to their expertise and get published in articles featuring their insights.

Company: Featured
Website: www.featured.com
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